Employer Tax Contributions

Tax Type	Rate	Base
Employer's National Insurance (Class 1 Secondary)	15% (from April )	Employee earnings above £5,000 annually (from April )
Apprenticeship Levy	0.5%	Annual pay bill over £3 million
PAYE Income Tax	Employee's marginal rates	Employee's gross pay

Filing & Compliance

• Register as an employer with HMRC before your first payday if you pay an employee £96 or more weekly, employ someone receiving a pension, or use subcontractors under the Construction Industry Scheme.
• PAYE (Pay As You Earn) payments are due by the 22nd of the next tax month if paying electronically, or by the 19th if paying by post.
• Submit final PAYE submission (FPS) for the tax year by April 19.

Income Tax Brackets

Income Range	Tax Rate
Up to £12,570	0%
£12,571 to £50,270	20%
£50,271 to £125,140	40%
Over £125,140	45%

Employee Contributions

Deduction Type	Rate	Cap
National Insurance (Class 1)	8%	On earnings between £12,570 and £50,270 annually
National Insurance (Class 1)	2%	On earnings over £50,270 annually
Student Loan (Plan 1)	9%	On earnings over £26,065 annually
Student Loan (Plan 2)	9%	On earnings over £28,470 annually

Personal Allowances

• Standard Personal Allowance: £12,570
• Allowance reduces by £1 for every £2 earned over £100,000
• Allowance is zero if income is £125,140 or above